London Digital Security Centre 2018/19

The LDSC Board has reviewed the organisation, instituting some restructuring, and has carefully considered business case options open to it to deliver its objectives. It will deliver the following in 2018/19:

• Continuing and expanding the In the Community programme, and enhancing the free membership proposition, expanding it for more scale.
• Set up a police preferred accreditation scheme, for cyber companies, badged through P-CPI
• Set up a badged accreditation for SMEs with tiered levels, again with P-CPI badging.
• Lead collaboration with likeminded bodies to maximise resource and effectiveness

This decision seeks approval to provide the funding in order to undertake the above.

The Deputy Mayor is asked to:

• Agree the provision of £200,000 grant funding for LDSC for 2018-2019 to allow it to continue fulfilling its objectives
• Agree this funding release in 3 tranches (£130k, £50k and £20k) to clear existing costs of partnership activities, provide a grant to cover this year’s community outreach and provide for ongoing professional advice on governance and future organisational restructuring
• Note the intention to explore alternative governance arrangements for LDSC, to achieve synergies on management and back office costs with P-CPI
• Amend the existing grant agreement to clarify that £50,000 of this funding should be repaid from any surpluses generated from cyber security activity in whatever entity this is achieved (P-CPI or LDSC)

1. Introduction and background

1.1. The LDSC was established in 2015 as a not for profit organisation that supports efforts of government, industry and academia and seeks to add value to the digital security landscape.

It is focused on identification, assessment and management of digital security threats affecting small and medium sized enterprises (SME). It is committed to evidencing a positive shift in the security posture of its members.

The LDSC is a company limited by guarantee and currently comprises 5 members: MOPAC, Barclays, The Royal Bank of Scotland, London Federation of small Business and the NCC Group.

2. Issues for consideration

2.1. The LDSC has established a firm and positive presence in the digital security arena. It has built a good base of membership within the SME community. The LDSC has worked with partners to put in place an effective market place, enabling SME to work with trusted partners to help protect themselves from the threat of cybercrime. The LDSC working with the Police as a key partner is able to act in an agile manner, reacting to timely threat information to put in place action to help protect the SME community.

In order to move forward the Board has given careful consideration to how the LDSC needs to position itself. This will involve some adjustments to its organisation and mode of delivery.

2.2. The Board of LDSC has reviewed performance to date and considered its future strategy. There is an opportunity to consolidate the management and back office functions of this initiative with P-CPI, to achieve more efficient delivery of LDSC's objectives. The LDSC has also made good progress in demonstrating that the potential for appropriate income generation and cost-recovery, in line with the original intention that this initiative should become self-funding.

2.3 So as to facilitate this and to ensure that the Company continues to deliver cyber protection to London's SMEs in line with the Police and Crime Plan, grant funding for 2018/19 will be required, at a lower level than in previous years. It is intended that a proportion of the grant will be repayable when the activities deliver any surplus.

3. Financial Comments

3.1. This grant is affordable within underspends carried forward from MOPAC's revenue budget for 2017/18. The grant provides a contribution towards LDSC's core activities; additional funding and revenue generation strategies are being actively pursued to enable it to expand its work and reach a wider range of small businesses in London to reduce their vulnerability to cyber crime.

3.2. The payment schedule is contained in Part 2.

4. Legal Comments

4.1. MOPAC has worked with lawyers to ensure the legitimacy and efficacy of the proposed action.

5. Equality Comments

5.1 Both LDSC and P-CPI have reviewed their responsibilities in respect of equality diversity and Inclusion and this decision does not present any ramifications

6. Privacy Comments

6.1. Both LDSC and P-CPI have reviewed their responsibilities in respect of data protection and are compliant with legislation. Both organisations are in the process of ensuring their compliance with GDPR.

7. Background/supporting papers

7.1 These are attached in Part Two.